What do you think is needed at the time of investing in property? Don’t you think it is a must to agree on some facts and let go of myths? If so, you will need some info based on which certain actions on investment shall be taken, right? However, what if you are not aware of them?
In such situations, you need us – someone who can list down myths and reality. Well, that’s the reason why we are here with some myths and realities.
Myths Versus Reality About Property Management Fees & More
#1: Expensive Property Managers
The first and most important myth is about fees – property managers take half of your salary. Well, no! That’s not the case. It is not true and contains zero truth! But that doesn’t mean property managers come as a free meal. You have to pay them for sure. However, not to the point that it will make you bankrupt. Usually and mostly, these property managers tend to charge according to the size and requirements of the clients. Also, their main duty is to walk you down the marketing strategies, giving or finding info related to the neighborhood, and up-keeping of your house. So, the reality about the myth is – your requirements allow the manager to quote fees. So, the question “how much do property managers charge” is restricted to all that we mentioned.
#2: I Know How to Take Care of Home & Not Property Managers
Landlords don’t have much time to invest in house care. But still, they like to experiment and mess everything up! This is a myth because people are smart and know when and how they will need someone like a manager to take care of their houses. Why do they hire such professionals? Well, it is quite obvious that landlords or those who own property want to give responsibility to an expert.
#3: My Home Will be Destroyed by Renters
It remains a myth that renters destroy homes and hard-earned properties. Well, if you check it from a layman’s point of view there will be some reality to the myth. But interestingly, if you choose to hire the best realtor or property manager then your concern will not remain present. It is because renters are usually recommended by the realtor – someone who is taken on board for the professional service. He or she is the one who sees the record of the renter, etc. before letting him become the one who would take your property on rent.
#4: NO Need for Property Managers
This is another myth related to property management – you will not need any property manager! Well, it is not true. Why did we say that? Ask yourself if I can make legal drafts about leasing contracts? Can I screen tenants? Do I know about eviction laws? Can I get my house or any other property maintained on short notice? Do I have enough information and know-how about real estate in the local market? Do I know how to ask for the best price? If you have answered no to most of these questions. Then you know why property managers are needed.
#5: Finding Best Tenants Doesn’t Require Any Skill
It is a reality that no such thing as “finding the best tenant on your own” exists. It doesn’t mean anybody despite the fact of understanding and knowing the real estate industry from all aspects can do the best deals. It however means that most of us are not into real estate but when it comes to hiring a realtor or property manager. We seem to get naïve and think nobody other than us can make the right choices (regarding finding the perfect buyer). This is just a flawed notion.
The reality is different. Property managers justify their fee structure. Do you know it is based on basic duties which are fulfilled by these professionals? If not, don’t worry. Enlisted below are some ways through which charges are defensible.
- Finding long-term tenants
- Looking for tenants who are reliable in terms of paying rent right on time
- Hunting for a tenant who doesn’t wear and tear the property
- Searching for a tenant who doesn’t seem like a risk
#6: Legal Matters Doesn’t Require Much Time or Understanding
Likewise, it is a flawed notion that I can handle everything just because I am not looking to spend money on a property manager. This makes no sense until and unless you are familiar with the process. Every state comes with a set of laws, polities, etc. which means you might not know the policies that imply in your neighborhood. That said, some aspects make the charges of a realtor acceptable. Some of them are mentioned below.
- The entire process of scrutinizing and screening tenants
- Conditions of the property and measures to maintain the safety of the tenants
- Legal matters at the time of tenant’s evictions
- The procedure of signing the commencement and termination documents
- Handling of security deposits as well as rents
Last Words: Are Property Managers Charges Justified?
Yes, with all the duties and responsibilities of a property manager in mind. It is justified on their end to ask for high charges.
We hope you found this blog post on Property Management Fees – Myths And Truth useful. Be sure to check out our post on 7 Things You Need to Know Before Listing Your Property for Rental for more great tips!
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